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Demand for staff is at near-record levels, according to a report that lifts hopes for both pay rises and an increase in permanent employment.

The latest survey by KPMG and the Recruitment and Employment Confederation found that vacancy rates last month were “just shy of January’s 15½-year high”. Joining salaries for permanent workers grew at the fastest pace since July 2007.

The survey uncovered evidence of skill shortages. Tom Hadley, the confederation’s director of policy, said: “Worsening candidate shortages mean that the number of people available to fill temporary and permanent jobs is falling at the sharpest rate in nearly